DSTOQ, a licensed, decentralized stock exchange for trading security tokens, has come out of stealth mode and launched its minimum viable product (MVP), the company said on Monday.
The first version of the DSTOQ platform, which allows users to invest in real-world assets including equity, bonds and gold using cryptocurrency, runs on the Stellar blockchain testnet and all transactions occur fully on-chain. Each new user gets credited testnet DSQ tokens to play-trade tokenized assets trade against DSTOQ’s token.
DSTOQ obtained a stock exchange license from the Vanuatu Financial Service Commission in January. The license enables it to conduct initial public offerings (IPOs) and create unique securities tokens.
“Many companies in the space claim to be launching platforms for security token trading, but if you look closely, none of them have actually obtained licensed yet,” said Craig McGregor, co-founder of DSTOQ and a former equity research analyst at Bloomberg.
“We are proud to have achieved a license in January 2018. Since then, we have been working in stealth to build our product. Launching out MVP is a huge milestone – not only for us as a company but for the cryptocurrency industry as a whole.
“We are excited to launch the DSTOQ Exchange in the coming months and to fulfill our mission of providing high growth opportunities for investors worldwide.”
Trading on the DSTOQ platform is decentralized and trades are conducted peer-to-peer, enabling users to always remain in full control of their assets, and trade directly with each other through blockchain technology. Trade execution and settlement take between 2 and 5 seconds, making the platform up to 100,000 times faster than traditional stock exchanges where settlements usually take 2-5 days, DSTOQ claims.
DSTOQ’s long term vision is to allow companies around the world to raise capital by using blockchain technology to tokenize securities that are then offered on the DSTOQ platform.
DSTOQ says it has already secured EUR 1.7 million in funding. Aeternity Ventures, a new incubator for blockchain startups building applications on the Aeternity blockchain platform, has said “DSTOQ was one of the first companies it has invested in.”
DSTOQ is part of the DSTOQ Group, which counts Dstoq Lt., the holder of the stock exchange license registered and incorporated in Vanuatu, as well as Liechtenstein-based DSQ Lt. and DSQ AG.
DSTOQ is the latest startup to join the growing list of blockchain companies looking to transform capital markets. Estonia-based Funderbeam is offering a primary and secondary marketplace for early-stage investments secured by blockchain technology. Switzerland’s Lykke provides a marketplace for the free exchange of financial assets including cryptocurrencies, digital assets, and sovereign currencies.